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What will be the outcome of the FTC's appeal against Judge Ada Brown's decision by August 21, 2025?
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Resolution / Starting Odds
FTC wins the appeal • 25%
FTC loses the appeal • 25%
Case is settled out of court • 25%
Appeal is withdrawn • 25%
Court records or official FTC announcements
Story
Texas Judge Ada Brown Blocks FTC's Nationwide Noncompete Ban
Aug 21, 2024, 11:32 AM
A federal judge in Texas has blocked the Federal Trade Commission's (FTC) rule banning noncompete agreements, which was set to take effect on September 4, 2024. The decision was made by Judge Ada Brown, a Trump-appointed judge, who ruled that the FTC lacked the authority to implement such a regulation, calling it 'arbitrary and capricious.' This ruling has significant implications for the estimated 30 million American workers who are currently bound by noncompete clauses. The FTC's rule aimed to prohibit these agreements nationwide, arguing that they stifle competition and innovation in the labor market. The White House has expressed support for the FTC's efforts, emphasizing the potential benefits of the ban, including an estimated $200 billion increase in wages over the next decade. However, the court's decision means the rule will not be enforced, and the FTC is considering an appeal.
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